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ACCC Cracking Down On Franchisors

ACCC Cracking Down On Franchisors

By Wisewould Mahony
September 9, 2016

The ACCC has been cracking down on non-compliant franchisors. In order to avoid fines of up to $54,000 we recommend that franchisors review their documentation, policies and procedures to ensure strict compliance with the Code.

The Franchising Code of Conduct (“Code”) was updated in January 2015.  Perhaps the most significant change for franchisors was the introduction of civil pecuniary penalties for breaches of the Code by franchisors. 

The ACCC investigates alleged breaches of the Code and has the power to take enforcement action where appropriate.

Franchisors have a number of obligations under the Code, primarily focused around disclosure and record keeping. It is important that franchisors review their documentation and have procedures in place to ensure strict compliance with the Code in order to avoid significant fines. 

Wisewould Mahony can review and upgrade franchise documentation to ensure compliance with the Code and provide a checklist for ongoing compliance.

For more information about the obligations of franchisors or any other franchising matter, please contact Adam Rich.